BWI: HOV Services, Ltd Announces Third Quarter and Nine Months Fiscal 2010-11 Results; Declares 3rd Interim Dividend of Rs. 2/- Per Equity Share to its Shareholders

Press release from Business Wire India
Source: HOV Services Limited
Thursday, January 27, 2011 04:05 PM IST (10:35 AM GMT)
Editors: General: Consumer interest; Business: Accounting & management consultancy services, Advertising, PR & marketing, Banking & financial services, Business services, Financial Analyst, Information technology, Stock exchanges; Technology
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HOV Services, Ltd Announces Third Quarter and Nine Months Fiscal 2010-11 Results; Declares 3rd Interim Dividend of Rs. 2/- Per Equity Share to its Shareholders


Mumbai, Maharashtra, India, Thursday, January 27, 2011 -- (Business Wire India) -- HOV Services Ltd (BSE: 532761, NSE: HOVS), India's top tier BPS company today announced consolidated result for the third quarter and nine months ended December 31, 2010. The company's board of directors in the meeting also declares 3rd interim dividend of Rs. 2/- per equity share of Rs. 10/- each for the FY 2010-11.

Financial Highlights for Third quarter and Nine Months result ended December 31, 2010

Consolidated Proforma Financial Performance:
Third Quarter FY 2010-11 Versus Proforma Third Quarter FY 2009-10
. Total Income for the third quarter FY 2010-11 decreased by 4.4% to Rs 1,736.2 million from Rs 1,815.2 million over the third quarter FY 2009-10.
. In dollar terms, Total Income for the third quarter FY 2010-11 decreased by 0.6% to USD 38.7 Mn from USD 38.9 Mn over the third quarter FY 2009-10.
. EBITDA decreased by 12.1% for the third quarter FY 2010-11 to Rs 290.0 million from Rs 329.7 million over the third quarter FY 2009-10.
. Net Profit decreased by 30.0% to Rs 133.9 million from Rs 191.5 million over the third quarter FY 2009-10.
. The Basic and Diluted Earnings per share (EPS) were Rs 10.72 for the quarter ended December 31, 2010, and Proforma Diluted Earnings per share (EPS) were Rs 5.83.

Third Quarter Versus Second Quarter of FY 2010-11
. Total Income for the third quarter decreased 7.5% to Rs 1,736.2 million from Rs 1.876.2 million over the second quarter of FY 2010-11.
. In dollar terms, Total Income for the third quarter FY 2010-11 decreased by 0.9% to USD 38.7 Mn from USD 39.1 Mn over the second quarter FY 2009-10.
. EBITDA decreased by 11.0% for the third quarter to Rs 290.0 million from Rs 325.7 million over the second quarter FY 2010-11.
. Net Profit decreased by 28.3% to Rs 133.9 million from Rs 186.9 million over the second quarter FY 2010-11.

Nine Months FY 2010-11 Versus Proforma Nine Months FY 2009-10
. Total Income for the nine months FY 2010-11 decreased by 1.2% to Rs 5,445.1 million from Rs 5.509.5 million over the nine months FY 2009-10.
. In dollar terms, Total Income for the nine months FY 2010-11 increased by 3.6% to USD 119.2 Mn from USD 115.0 Mn over the nine months FY 2009-10.
. EBITDA decreased by 5.2% for the nine months FY 2010-11 to Rs 930.4 million from Rs 982.0 million over the nine months FY 2009-10.
. Net Profit decreased by 12.8% to Rs 497.3 million from Rs 570.6 million over the nine months FY 2009-10.

Significant Developments during the Third Quarter Fiscal Year 2010-11 and noteworthy items
. Added over US $10.3 million in customer contracts in the third quarter FY 2010-11.
. Top 100 clients represent over 78% of total revenues with the largest customer representing only 15% of total revenues.
. Company maintained strong liquidity position with -
a. DSO of 50 days,
b. Debt to Equity Ratio of 1 to 1.24 and
. Net Bank Debt of US $98.0 million at December 31, 2010
. International Association of Outsourcing Professionals (IAOP) ranked us:
a. Best 20 Leaders by Industry Focus: Health Care;
b. Best 10 Companies by Service Offered: Document Management;
c. Best 10 Leaders by Service Offered: Financial Management;
d. Best 20 Leaders by Region Served: India;
e. Best 20 Leaders by Region Served: Canada;
. Global Presence and experience team with over 8,787 associates, strategically located across the globe; India 6,323, North America 1,450, China 666 and Mexico 348 operating from strategically located in 46 delivery centers comprising of 33 centers in US & Canada, 10 in India, 2 in China and 1 site in Mexico.
. HOVS is also nominated with the following recognition / awards during the year 2010:
a. Nasscom Annual Survey 2010 has ranked HOV Services amongst the "Top 15 BPO Exporters 2009-10" in India.

b. 2010 Global Services 100 (GS 100) Survey has awarded HOV Services as a Top BPO provider in three categories namely, "Industry Specific BPO Vendors", "Top BPO Vendors" and "Top FAO Vendors" list.

c. Government of Maharashtra has honor HOV Services with "Maharashtra Information Technology Support Services- BPO /KPO award 2010"

About HOV Services Limited:

HOV Services Limited one of the largest end-to-end BPO company headquartered in Chennai, India provides Finance and Accounting services in the BFSI, Healthcare, Government, Telco, Publishing, Retail, Commercial and Industrial Manufacturing industries. Its clients include over 50% of the FORTUNE 100® and are some of the largest companies
in the industries served. RightShore delivery centers strategically located in India, North America, China and Mexico with over 8,787 associates working together to Exceed Expectations® of our clients.

To view the Press Release with the Financial Highlights for Third quarter and Nine Months result ended December 31, 2010 in a pdf format, please click on the link given below:

Press Release

For picture(s)/data to illustrate this release click below:

http://www.BusinessWireIndia.com/attachments/Final_Press_Release_Q3-_FY_2011.pdf
Final_Press_Release_Q3-_FY_2011.pdf


CONTACT DETAILS
Jim Reynolds, Global CFO and CAO, HOV Services Limited, +91 9823904286
Shekhar Singh Batham, Manager - Investor Relations, HOV Services Limited, +91 (22) 27812234 / +91 9869587949, shekhar.batham@hovservices.com

KEYWORDS
CONSUMER, CONSULTANCY SERVICES, MARKETING, BANKING, BUSINESS SERVICES, Financial Analyst, IT, STOCK EXCHANGES, TECHNOLOGY

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